Question on tds

Save Share

This query is : Resolved

vijayagarwal8888@gmail.com (Querist)
Follow

15 December 2012 One of our party has submitted one bill for godown rent for October 2012 with us. However AO has given the exemption notification u/s 197 and grant a rebate of tds deduction of 9.5% on 16th October 2012. Now I want to ask that should we deduct 10% for the 1st 15 days and .5% for the next 15 days. Or should I ask the party to make to different bill so that we can deduct the TDS differently..

V K Bajaj

V K Bajaj (Expert)
Follow

16 December 2012 Assumption is that rent bill is dated 1st Oct. And on 1st Oct you were to deduct tax @ 10% as on this date neither landlord nor tenant were aware of decision of AO for reduced rate of TDS.

request for two bills for Oct only will be purely a non-accounting practice.

Soumitra Basu

Soumitra Basu (Expert)
Follow

16 December 2012 CREDIT THE ENTRY ON OR AFTER 16.10 AND DEDUCT 0.50%.

vijayagarwal8888@gmail.com

vijayagarwal8888@gmail.com (Querist)
Follow

17 December 2012 Mr. Bajaj & Mr. Basu Thank you for the advise but both of you forms a different opinion

CA Piyush Chandanmal Rakhecha

CA Piyush Chandanmal Rakhecha (Expert)
Follow

17 December 2012 Dear Vijay,

You need to ask calculate & Deposit TDS at 10% for early 15 days & for rest of days at reduced rate (0.5%).

The exemption notification is applicable from 16th, so the rate will change accordingly.

Making Two different bill is not a solution.

TDS to be Deposited on date of " Credit / Payment " whichever is eariler at applicable TDS rate.

Soumitra Basu

Soumitra Basu (Expert)
Follow

17 December 2012 DATE OF CREDIT IS AN IMPORTANT FACTOR HERE. THEREFORE, IF THE SAME IS ON OR AFTER 16TH IRRESPECTIVE OF THE DATE OF BILL, TDS SHOULD BE 0.50%

vijayagarwal8888@gmail.com

vijayagarwal8888@gmail.com (Querist)
Follow

18 December 2012 Thanks Piyush & Soumitra
Piyush-Though I also hold the same opinion as of you. But since you are saying that for 1st 15 days tds to be deducted @10% and for next @ .5% (My view is also same) but in that case for bill of october we are giving credit on 2nd nov & payment on whatever next day say after 2nf nov

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now